Drugs will again be a focus this coming week as Shire Plc (LON:SHP) completes the fourth-quarter results announcements from the FTSE 100-listed pharma giants following numbers from peers AstraZeneca PLC (LON:AZN) and GlaxoSmithKline plc (LON:GSK) over the previous fortnight.
Analysts expect to see a big boost to sales this year for Shire due to currency movements but also as a result of the integration of recent acquisitions, which will have a short term impact on earnings due to costs.
Deutsche Bank’s analysts expect Shire to deliver pro forma revenue growth of 7% for the fourth-quarter, allowing it to meet the upper end of its full year earnings per share guidance range of 11%.
In a preview note, they said they also expect the strong ongoing launch of Shire’s dry eye disease drug Xildra drug to give management confidence to offer guidance for around 15% reported EPS growth in 2017.
Comments surrounding possible drug price controls by the new US administration will also be sought along with the integration progress on Shire's Baxalta and NPS acquisitions on Thursday.
Rolls-Royce results
US factors will also be a key focus for blue chip engines maker Rolls-Royce Holdings PLC (LON:RR), which delivers its final 2016 results on Tuesday.
The newsflow surrounding R-R in recent months has been dominated by a bribery scandal, so hopefully the results will be an opportunity for the focus to return to the company’s operations.
However, analysts at the Share Centre pointed out that all isn’t rosy for R-R as the market believes that sales for the year will be down slightly as sales of new engines have cannibalised older models.
In a preview note, they said: ”Group profits will also hurt by FX hedges that have gone wrong because of Brexit.
“Nevertheless, it’s the forward looking statement on potential new contracts, progress on group restructuring and lowering costs that will be more important.”
Travel, drink, power ...
Also on Tuesday, merged FTSE 100-listed travel giant TUI Group PLC (LON:TUI) will issue a first-quarter trading update, with investors hoping that it will avoid the tumbles its mid cap peer Thomas Cook Group PLC (LON:TCG) made last week after issuing a cautious outlook statement.
This is an important time of year for the world’s largest tourism group as many people plan and book their summer holidays in the winter months
In December, TUI Group said trading for the winter and summer 2017 seasons was in line with expectations.
Another blue chip group reporting in the coming week will be soft drinks bottler Coca-Cola HBC PLC (LON:CCH).
Deutsche Bank’s analysts expect the group’s full-year results, due Thursday, to see a continuation of nine month trends with lower volumes, but growth coming via price hike moves, particularly in Nigeria as developing markets recover after a poor third quarter.
Among the mid caps, power station operator Drax Group PLC (LON:PLC should be a focus as well on Thursday after last month’s news that the European Commission finally approved a key subsidy contract from the UK government.
In a preview, Deutsche Bank’s analysts said: “We see scope for the company to report results better than its guidance, benefiting from spiking power prices in Q4 2016.
“With Drax having secured its fixed price biomass contract, there may also be scope for it to update its production and cost guidance for its biomass units.”
Significant announcements expected
Monday
Finals: Fidessa Group PLC (LON:FDSA)
Tuesday
Trading update: TUI Group PLC (LON:TUI)
Finals: Rolls-Royce Holdings PLC (LON:RR.), Spectris plc (LON:SXS), Acia Mining PLC (LON:ACA)
Interims: A&J Mucklow Group PLC (LON:MKLW)
Wednesday
Interims: Animalcare Group (LON:ANCR), Hargreaves Services PLC (LON:HSP)
Thursday
Finals: Shire Plc (LON:SHP), Coca-Cola HBC PLC (LON:CCH), Drax Group PLC (LON:DRX), Lancashire Holdings PLC (LON:LRE), Primary Health Properties PLC (LON:PHP)
Interims: Avation PLC (LON:AVAP)
Friday
Finals: Essentra PLC (LON:ESNT), Kingspan Group (LON:KGP), Millenium & Copthorne Hotels PLC (LON:MLC), Segro PLC (LON:SGRO)